1. E.P. for Call holder is Rs 650, premium is Rs 60, 2. E.P. for Put writer...
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Question:
1. E.P. for Call holder is Rs 650, premium is Rs 60,
2. E.P. for Put writer is Rs 600, premium is Rs 100. Following are the market prices (Rs):
a) 350
b) 1,400
Calculate net pay off assuming investor has taken both the options together.
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